In the following video, Motley Fool financial analyst Matt Koppenheffer takes a deep look at Annaly Capital's (NLY +1.19%) earnings report. While a lot of the report initially seemed very positive, Matt highlights one factor he found somewhat worrying: prepayments. When mortgage borrowers pay back their loans early, mortgage-backed security investors like Annaly suffer because they don't get to collect the interest that was expected over the life of the loan. As of Q4, Annaly continues to struggle with a relatively high prepayment rate in its MBSes. Matt details this headwind for Annaly and also gives some of the more positive takeaways from the company's earnings.
Time to Get Concerned About Annaly?
By Matt Koppenheffer – Feb 8, 2013 at 2:00PM
NYSE: NLY
Annaly Capital Management
Market Cap
$14B
Today's Change
(1.19%) $0.25
Current Price
$21.30
Price as of October 22, 2025 at 4:00 PM ET
One concerning factor to consider for Annaly Capital investors.
About the Author
Matt is the head of the Coverage Team for The Motely Fool's premium products. Previously, he's been . Matt is a heavy user of AI tools and is working on harnessing them to help Fool members. Previously, Matt was GM of Motley Fool Ascent, led The Motley Fool Deutschland, has been an investor on various Fool services, and co-hosted the podcast "Where the Money Is". He also co-authored the book The Astonishing Collapse of MF Global. Matt started his career in San Francisco as a technology-focused investment banker and also worked at a $15 billion private equity company. When he's thinking about how to make Fools smarter, happier, and richer, you can usually find Matt running trails or making a mess in the kitchen. He's a graduate of the University of Pennsylvania, but is a lifelong fan of Penn State football.